Projects, operations, and future plans are covered in this annual report for the second year of the Peace Corps. The first section looks at the Peace Corps in action in Africa, Latin America, the Far East, the Near East, and South Asia. Brief descriptions are provided in the second section of programs in eight host countires: El Salvador, Ghana, Philippines, Togo, Nepal, Tanganyika, North Borneo/Sarawak, and Colombia. A section on operations considers recruitment, selection, and training of volunteers; operations overseas; and staffing for overseas service. Section 4 discusses new developments that represent improvements upon past procedures and practices, including educational television, lawyers for Africa, training counterparts in the United States, Gabon construction project, orientation for staff wives, volunteer conferences, other nations' Peace Corps, and returning volunteers. Other sections focus on the budget, unsolicited opinions from the press, and research, evaluation, and the medical programs. (YLB)